DISQUS

Ricky Chotai · 7 months ago

The regulators would never allow T-Mobile and 3 to merge even in a recession.

Alex Kinch · 7 months ago

NTL and Telewest formed to create a near virtual UK cable network monopoly, and that was before a recession, so it's not impossible to push these things through. Besides if they did combine they wouldn't have more than 30% of the market - which I believe is one of the litmus tests of whether something is a potential monopoly.

On a related note, I believe the Australian government are considering approving the merger of 3 and Vodafone in Australia - which only leaves two competitors (Optus and Telstra). These things aren't impossible..

(edit: clarified the Australian government comment - apparently it's being investigated and *not* approved as yet)

Ricky Chotai · 7 months ago

Ahh I forgot about the 30% figure, I did remeber the compettion was rumoured to going to block a potential merge (can't remember the operators) here in the UK.
These things may not be possible be would it be the best for the customer? I personally do not think it will.

Alex Kinch · 7 months ago

Just to clarify, I'm not saying 30% is a precise figure for testing a potential market monopoly, but it is in my opinion low enough for a combined operator not to be of concern in that respect.

I don't think the government (whichever party or form it may evolve into in the coming months) is in any particular strong position to deny such a merger - after all the combination of T-Mobile and 3 did agree to hand over 8.3877 *billion* pounds to the government for their 3G licences back in April 2000 - which incidently 50% was upfront and the rest over 20 years. It's these ongoing payments which are crippling the operators now.

james murphy · 7 months ago

actually 3 uk paid 100% of the licence fee in cash and then received approx 50% of the total cost by selling 30% of the company to NTT DoCoMo and KPN

Alex Kinch · 7 months ago

My understanding was the deal with the government was 50% upfront and the remainder 50% over 20 years - although I (and the BBC article I found referencing the original sale) may be wrong..

Veronese1515 · 7 months ago

Is this the first competition to Google's purchase of GrandCentral - the one number for all networks, for life concept aka Google Voice

james murphy · 7 months ago

Actuallt INQ do not make the skype/3 phone. The designed the phone but it is actually manufactured by Amoi. INQ is not a handset manufacturer. Given that 3 has sold a little more than 100,000 skypephones out of a total of 5.5million customers, i am not sure how you can say that 3 is trying to get rid of their traditional voice traffic.

and how would you value 3 uk's 5.5million customers vs the 12m of t-mobile?

Alex Kinch · 7 months ago

Thanks for the INQ clarification James, I'll update the article in a second.

Are you in the UK? If you are, and you've been anywhere near a High Street recently with a 3 Store, read the national press or talked to anyone with a 3 handset, you'll have heard of the massive marketing blitz 3 are doing for Skype - which incidently has been funded by Skype. Whilst the 100,000 skypephone users out of 5.5 million customers isn't a great chunk of their subscriber base, what's more interesting is that they're trying to persuade their customers to use Skype for *all* their voice calling requirements.

Alex Kinch · 7 months ago

Here's a quote for you:

"Communication through the internet is exploding. Internet calling or VoIP, social networking, instant messaging and email are used by millions in the UK every single day. They are open to all on their PCs and laptops. We want people to be free to communicate from their mobiles in the same way as they do from their PCs.

"In future you will be able to buy a 3 SIM for unlimited Skype-to-Skype calls for less than the price of a cup of coffee and talk for as much as you want without ever paying us another penny. We won’t ask you for a top-up or a monthly commitment. If you want to talk on a mobile for free, just join us and give it a go. This is for everyone."

Who said that? Kevin Russell, Chief Executive Officer of 3 UK - only last month. Also from the same press release, 3 currently carry 1.5m minutes a day of Skype to Skype traffic - and have been branding themselves as the 'UK’s biggest mobile broadband network.'